Finance
The Dodd-Frank Act's Qualified Mortgage (QM) rule was designed to:
ARequire all mortgages to have fixed interest rates
BEnsure lenders verify a borrower's ability to repay before making a loan✓ Correct
CEliminate all mortgage fees and points
DRequire a minimum 20% down payment for all loans
Explanation
The QM rule under the Dodd-Frank Act requires lenders to make a reasonable determination of a borrower's ability to repay before extending a mortgage, protecting borrowers from predatory lending.
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